Majority of household deposits on transaction accounts

Annual growth in household1 deposits was 3.1% in October 2017, despite the EUR 1 bn decrease in the stock from the previous month, to EUR 86.4 bn. The highest growth rate was recorded for transaction accounts2; at the end of October, they accounted for 75% of the deposit stock. The volume of deposits with agreed maturity has continued to decline, and in October, the stock of these decreased to below EUR 7 bn (8% of household deposits).

The structure of the household deposit stock has changed significantly. In October 2008, the share of deposits with agreed maturity in the household deposit stock peaked at 38%, whereas in October 2017 their amount dropped to the lowest level witnessed in the current millennium. At the same time, the household deposit stock has doubled.

At their peak of popularity, also the average interest rate on the stock of deposits with agreed maturity was at its highest level, i.e. 4.80%, whereas in October 2017, it was only 0.59%. The interest rate on transaction accounts was 0.11% in October.

Loans

In October 2017, households drew down new housing loans to the value of EUR 1.6 bn. The average interest rate on new housing-loan drawdowns was 1.00% and the imputed margin was 0.97%. At the end of October 2017, the stock of euro-denominated housing loans amounted to EUR 95.8 bn and the annual growth rate of the stock was 2.1%. Household credit at the end of October comprised EUR 15.2 bn in consumer credit and EUR 16.8 bn in other loans.

New drawdowns of loans to non-financial corporations (excl. overdrafts and credit card credit) amounted to EUR 2.0 bn in October. The average interest rate on new corporate-loan drawdowns declined from September, to 1.87%. The stock of euro-denominated loans to non-financial corporations at the end of October was EUR 79.3 bn, of which loans to housing corporations accounted for EUR 28.2 bn.

Deposits

At the end of October 2017, the average interest rate on the stock of household deposits was 0.15%. In October, households concluded EUR 0.4 bn of new agreements on deposits with agreed maturity, at an average interest rate of 0.37%.

1Households also include non-profit institutions serving households, the share of which in the stock of household deposits has since 2003 been some 4–5% (4.2% in October 2017).2Transaction accounts refer to overnight deposits redeemable on demand that, in addition to daily transaction accounts, include also other household accounts that do not contain restrictive drawing provisions but can only be used for cash withdrawal or through another account.

Key figures of Finnish MFIs' loans and deposits, preliminary data

August, EUR million

September, EUR million

October, EUR million

October, 12-month change1, %

Average interest rate, %

Loans to households2, stock

127,129

127,636

127,850

2,8

1,53

- of which housing loans

95,370

95,672

95,819

2,1

1,03

Loans to non-financial corporations2, stock

78,287

78,974

79,261

6,0

1,40

Deposits by households2, stock

86,721

87,455

86,437

3,1

0,15

Households' new drawdowns of housing loans

1,610

1,590

1,638

1,00

1 Rate of change has been calculated from monthly differences in levels adjusted for classification and other revaluation changes. 2 Households also include non-profit institutions serving households; non-financial corporations also include housing corporations